UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15769 \ June 5, 1998
Securities and Exchange Commission v. Brent Gale, Lucy Gale, Hal Skinner,
and Margarita Skinner, 98 CV 137 (D. Wy.)
The Commission today filed an insider trading action against Brent Gale, a
resident of Cheyenne, Wyoming and a vice president of an EchoStar
Communications Corp. (EchoStar) subsidiary, EchoStar Satellite Corporation.
The complaint, filed in the United States District Court for the District
of Wyoming, alleges that on February 21 and February 24, 1997, Gale
purchased a total of 1250 shares of EchoStar stock at an average price of
$15.77 after learning of a confidential alliance between News Corporation
and EchoStar by virtue of his position. The complaint alleges that after
the public announcement of the alliance, Gale sold the 1250 shares for
$22.00 per share for illegal profits of $7,782.50. The complaint also
alleges that Gale informed his wife, Lucy Gale, of the alliance and that
she in turn tipped her sister and brother-in-law, Margarita and Hal
Skinner, who borrowed funds to purchase EchoStar stock and realized
unlawful profits of $5,550.00.
Brent and Lucy Gale and Hal and Margarita Skinner have agreed to consent, without admitting or denying the substantive
allegations in the complaint, to the entry of an order enjoining each of them from future violations of Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Brent Gale agreed to disgorge $7,782.50, plus prejudgment
interest, and to pay a civil monetary penalty of $7,782.50. Lucy Gale agreed to pay a civil monetary penalty of $5,550.00.
With respect to Hal and Margarita Skinner, disgorgement was waived and imposition of civil penalties was not sought in light
of their inability to pay.
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